Business Taxes Law Guide – Revision 2015

Sales and Use Tax Annotations

505.0000 SALES TO THE UNITED STATES AND ITS INSTRUMEN-TALITIES—Regulation 1614

Annotation 505.0175

(a) IN GENERAL—AGENCIES QUALIFYING FOR SALES TAX EXEMPTION

505.0175 Federal Public Defenders of San Diego—Resales to U.S. Government. Federal Public Defenders of San Diego, Inc. is a nonprofit corporation established under the Criminal Justice Act. The grant from the Judicial Conference of the United States provides that all property purchased with grant funds costing more than $100 belongs to the United States and may not be disposed of except as specified in the grant.

Purchases of items costing more than $100 are therefore purchased for immediate resale to the U.S. Government and are nontaxable sales for resale followed by exempt sales to the United States. Purchases of items costing less than $100 are not for resale and the gross receipts of the retailer are subject to sales tax. 10/19/84.